ISA and P2P Join Forces!

On the 6th April 2016, QuidCycle and Peer-to-peer are taking a huge step forward. Back in March 2015, the government announced that it would hold talks to discuss whether they should extend Individual Savings Account (ISA) eligible investments to include debt securities and equity offered by companies via crowdfunding platforms (known as investment-based crowdfunding) – so that means your investments into QuidCycle! This is all in line with the government’s commitment to increase the choice of investments available to ISA investors and improve competition within the banking sector. I think we would all agree, that is something we have been waiting for.

On the 6th April 2016, QuidCycle and Peer-to-peer are taking a huge step forward. Back in March 2015, the government announced that it would hold talks to discuss whether they should extend Individual Savings Account (ISA) eligible investments to include debt securities and equity offered by companies via crowdfunding platforms (known as investment-based crowdfunding) – so that means your investments into QuidCycle! This is all in line with the government’s commitment to increase the choice of investments available to ISA investors and improve competition within the banking sector. I think we would all agree, that is something we have been waiting for.

In July, they consulted interested organisations and also the public to understand whether this change had support. They put particular focus on its simplicity, the reputation of ISAs as a trusted savings brand, customer protection and the sustainability of the tax system. After gathering a large number of responses, the Government came to the decision to extend the list of investments eligible for the Innovative Finance ISA – and we could not be happier! This will now include debt securities issued by companies and crowdfunding platforms as well as being available for certain peer-to-peer loans. Wonderful news for QuidCycle, its investors and the P2P world. Now, P2P investments will stand side by side with the more traditional investments currently in the market.

With that, we are delighted to announce QuidCycle’s stamp of approval for its introduction on the 6th April 2016. UK savers now have more options available to enable them to receive a higher rate of return for their money, whilst still allowing them to receive interest tax free. Not only does this decision provide ISA holders with greater choice over how to invest, but it will support the crowdfunding sector’s growth as a source of alternative finance. The Government has also committed to further work within the sector and other interested parties to further explore the case for including equity crowdfunding within ISAs – great news all round!

"What exciting news for the P2P industry and UK savers! This places P2P firmly in the mainstream where it belongs. Now, UK savers have access to healthy tax-free returns with medium to low risk, getting their money working even harder for them on their route to financial success". – Frank Mukahanana, Founder at QuidCycle.

Currently, QuidCycle's investors get a healthy return of up to 6.1%. This move will allow our investors to access tax-free returns. Your capital is at risk with peer-to-peer lending.

Please feel free to contact us if you have any questions with regards to these changes and we look forward to further helping you make more of your money on your route to financial success! For further information on the consultation, click here.